This is the first report on the application of Directive 2009/33/EC on the promotion of clean and energy-efficient road transport vehicles, and on supporting actions taken by Member States, as required by the Directive’s Article 10. This so-called Clean Vehicle Directive aims at stimulating the market for clean and energy-efficient vehicles, thus contributing in the transport sector to the energy, climate and environment policies of the EU. The deadline for transposition was set for 4 December 2010.

The report’s main conclusions are as follows:

Late transposition: Directive 2009/33/EC has only been in force for a short period of time, with implementation in a number of Member States being delayed considerably. The late transposition of the Clean Vehicle Directive by most Member States has limited the experience with this Directive to date and has therefore provided challenges for the assessment of its impacts within the scope of this monitoring report. Lack of reporting obligations on Member States: the absence of reporting obligations for Member States and the inconsistencies in the data available have made the analysis difficult. Procurement: additional guidance appears necessary for the application of the different options of the Directive in order to take into account energy consumption, CO 2 and pollutant emissions when procuring vehicles. Monetisation approach: there is also the need to support the still novel monetisation approach - a methodology defined in the Directive for calculating lifetime operational costs for energy consumption, CO 2 emissions, and pollutant emissions of vehicles. Member States should provide this guidance, paying particular attention to their relevant national legislation. Dedicated training for staff responsible for implementing the relevant national legislation should also be taken into account. Clean Vehicle Portal : this portal, created by the Commission in 2009, is considered a useful tool in assisting public authorities with the procurement of clean and energy efficient vehicles, and concerning the prevalence of the experience acquired under this Directive. The Commission will upgrade the Portal to respond to the expectations of public and private procurers. Additionally, the functionality in relation to the stimulation of joint procurement of clean and energy efficient vehicles on the Portal will be improved, including the better facilitation of close contacts between the relevant national and regional authorities in the EU Member States and beyond. Private customers: according to the report, more attention to private customers could also enhance the impact of Directive 2009/33/EC, following the original objective of initially addressing the public sector directly, and subsequently reaching out to professional and private procurement. Increase awareness: various stakeholders, such as the EU industry associations, could develop guidance , as the International Association of Public Transport (UITP) has done, for their respective members in order to increase awareness of this Directive. European Electro-mobility Observatory (EEO): this observatory, launched by the Commission in December 2012, ensures the collection and dissemination of key statistical data on electromobility (battery electric and fuel cell electric vehicles) in a consistent manner by regional and local authorities. The EEO should become the main information platform of European regions on electromobility, as well as provide information on how public procurement at the local level influences the development of electric vehicles or fuel cell electric vehicles market in Europe.

2014 review of the Directive: in the next review of the Directive, scheduled for 2014, the Commission is planning to assess thoroughly the value added of the Directive. In this context, it may consider the possibility of simplifying the application of the Directive by streamlining it. This could be done by narrowing choices on Member State level, for example, by focussing on the simplest approach with regard to calculations to be carried out. This would prevent a possible fragmentation of the internal market through different technological selections. It could then provide better conditions for economies of scale for innovative vehicle technologies through bundling demand within the internal market. Clear reporting obligations could also be imposed upon the Member States.

PURPOSE: to promote the market for clean and energy efficient vehicles in order to reduce pollutant emissions in the transport sector.

LEGISLATIVE ACT: Directive 2009/33/EC of the European Parliament and of the Council on the promotion of clean and energy-efficient road transport vehicles.

CONTENT: following a first reading agreement with the Parliament, the Council adopted this directive on the promotion of clean and energy-efficient road transport vehicles. The Directive aims to promote the market for clean and energy efficient vehicles and to improve the transport sector's contribution to fulfilling the EU's environment, climate and energy policies. It requires contracting authorities, contracting entities as well as certain operators to take into account lifetime energy and environmental impacts, including energy consumption and emissions of CO 2 and of certain pollutants, when purchasing road transport vehicles with the objectives of promoting and stimulating the market for clean and energy-efficient vehicles and improving the contribution of the transport sector to the environment, climate and energy policies of the Community.

Compared to the Commission's original proposal, the agreement reached between Parliament and Council redefines the scope of the Directive and introduces the requirement that authorities and operators take energy and environment impacts into account when purchasing a vehicle, while allowing the application of different options for meeting this requirement.

With regard to the scope, the Directive covers road transport vehicles purchased by contracting authorities and contracting entities, irrespective of whether such authorities and entities are public or private. Furthermore, the Directive covers the purchase of road transport vehicles used for performing public passenger transport services under a public service contract, leaving to Member States the freedom to exclude minor purchases with a view to avoiding an unnecessary administrative burden. In line with Directive 2007/46/EC and with a view to avoiding an undue administrative burden, Member States may exempt authorities and operators from the requirements laid down in the Directive when purchasing vehicles designed and constructed for special use.

Member States must ensure that, from 4 December 2010, all contracting authorities, contracting entities and operators within the scope of the Directive, when purchasing road transport vehicles, take into account the operational lifetime energy and environmental impacts , which must include at least the following: (a) energy consumption; (b) emissions of CO 2; and (c) emissions of NOx , NMHC and particulate matter.

Member States must then apply one of the following options :

(a) by setting technical specifications for energy and environmental performance in the documentation for the purchase of road transport vehicles on each of the impacts considered, as well as any additional environmental impacts; or

(b) by including energy and environmental impacts in the purchasing decision, whereby: — in cases where a procurement procedure is applied, this shall be done by using these impacts as award criteria, and — in cases where these impacts are monetised for inclusion in the purchasing decision, the methodology for the calculation of operational lifetime costs shall be used. The latter is set out in the text of the Directive.

The Commission must adapt to inflation and to technical progress the data for the calculation of the operational lifetime costs of road transport vehicles as set out in the text, in accordance with the regulatory procedure with scrutiny. It must facilitate and structure the exchange of knowledge and best practices between Member States on practices for promoting the purchase of clean and energy-efficient road transport vehicles by contracting authorities, contracting entities and operators.

Report: every 2 years, with effect from 4 December 2010, the Commission must prepare a report on the application of the Directive and on the actions taken by individual Member States to promote the purchase of clean and energy-efficient road transport vehicles. Those reports must particularly assess the options referred to above, and the need for further action. In those reports, the Commission must compare the nominal and relative numbers of vehicles purchased corresponding to the best market alternative in terms of lifetime energy and environmental impacts, within each of the categories of vehicles listed in Table 3 of the Annex (Lifetime mileage of road transport vehicles), to the overall market for these vehicles and estimate how the options have affected the market. The Commission must also present an evaluation of the methodology for the calculation of operational lifetime costs.

ENTRY INTO FORCE: 04/06/2009

TRANSPOSITION: 04/12/2010.

The European Parliament adopted by 641 votes to 37 with 24 abstentions, a legislative resolution amending the revised proposal for a directive of the European Parliament and of the Council on the promotion of clean and energy efficient road transport vehicles. The report had been tabled for consideration in plenary by Dan JØRGENSEN (PES, DK) on behalf of the Committee on Environment, Public Health and Food Safety.

The amendments were the result of a compromise between Parliament and Council. The main amendments– adopted at 1st reading of the codecision procedure – are as follows:

Subject matter and aim : the Directive requires contracting authorities, contracting entities as well as certain operators to take into account lifetime energy and environmental impacts, including energy consumption and emissions of CO2 and of certain pollutants, when purchasing road transport vehicles. A new recital explains that the Directive aims to stimulate the market for clean and energy efficient vehicles, and especially - since this would have a substantial environmental impact - to influence the market for standardised vehicles produced in larger quantities such as passenger cars, buses, coaches and trucks, by ensuring a level of demand for clean and energy efficient road transport vehicles which is sufficiently substantial to encourage manufacturers and the industry to invest in and further develop vehicles with low energy consumption, CO 2 emissions, and pollutant emissions

Exemptions: Member States may exempt from the requirements laid down in the Directive contracts for the purchase of road transport vehicles referred to in Article 2(3) of Directive 2007/46/EC, which are not subject to type approval or individual approval on their territory.

Scope: the Directive shall apply to contracts for the purchase of road transport vehicles by:

- contracting authorities or contracting entities insofar as they are under an obligation to apply the procurement procedures set out in Directives 2004/17/EC and 2004/18/EC;

- operators for the discharge of public service obligations under a public service contract within the meaning of Regulation (EC) No 1370/2007 on public passenger transport services by rail and by road in excess of a threshold which shall be defined by Member States not exceeding the threshold values as set out in Directives 2004/17/EC and 2004/18/EC.

Purchase: all contracting authorities, contracting entities and operators, when purchasing road transport vehicles, must take into account the operational lifetime energy and environmental impacts (energy consumption, emissions of CO 2, and emissions of pollutants, including NOx, NMHC, and particulate matter), but the compromise text states that they must fulfill this requirement by applying at least one of the following options :

- by setting technical specifications for energy and environmental performance in the documentation for the purchase of road transport vehicles on each of the impacts considered, as well as any additional environmental impacts; or

- by including energy and environmental impacts in the purchasing decision, whereby: in cases where a procurement procedure is applied, this will be done by using these impacts as award criteria; and, in cases where these impacts are monetised for inclusion in the purchasing decision, the methodology for the calculation of lifetime costs shall be used.

Methodology for the calculation of operational lifetime costs : this includes calculation in units of energy consumption per kilometre whether this is given directly, which is the case for instance for electrical cars, or not. The methodology is set out in Article 6.

Best practice exchange : the Commission will facilitate and structure the exchange of knowledge and best practices between Member States on practices for promoting the purchase of clean and energy efficient vehicles by contracting authorities, contracting entities and operators.

Report : in its report, the Commission shall compare the nominal and relative figures of vehicles purchased corresponding to the best market alternative in terms of lifetime energy and environmental impacts, within each of the categories of vehicles listed in Table 3 of the Annex, to the overall market for these vehicles and estimate how the options referred to above have affected the market, and assess the need for further action and include proposals as appropriate. No later than the date of the first report, the Commission shall examine the options, present an evaluation of the methodology for the calculation of operational lifetime costs and propose appropriate adjustments if necessary.

The Committee on the Environment, Public Health and Food Safety adopted a report drafted by Dan JØRGENSEN (PES, DK) and amended the revised proposal for a directive of the European Parliament and of the Council on the promotion of clean and energy efficient road transport vehicles.

The main amendments – adopted at 1 st reading of the codecision procedure – are as follows:

Scope : according to MEPs, the scope of the directive should cover the retrofitting of type-approved road transport vehicles with engines and replacement parts. In order to promote the replacement of old or polluting vehicles, as well as innovation, and ensure the beneficial effects of the proposed measure, the engines and the replacement parts should apply to those vehicles which have not exceeded 75% of their total lifetime mileage. State aid for the procurement of road transport vehicles should comply with EC rules.

Exemptions : the following vehicles should be exempt from the scope of this Directive: i) vehicles providing vital emergency services (e.g. ambulances, fire and rescue vehicles); ii) vehicles which are used by authorities/operators to provide operational support and to maintain infrastructure in connection with local public transport such as special vehicles used to maintain overhead cables.

Lifetime costs calculated: the Directive requires all public procurers – or actors acting on behalf of or under licence from the public sector – to calculate not only the purchase price but also the lifetime costs for fuel, CO2 emissions and air pollution, and to use those as a criterion for purchase. According to MEPs, energy consumption costs, and the costs arising from CO2 and pollutant emissions, should be treated as a voluntary criterion to enable purchasers to select tenders that are environmentally friendly as well as offering the best value for money.

Label : local, regional or national authorities which procure clean and energy efficient vehicles in respect of at least 75% of their annual specific procurement may use the label 'clean and energy efficient urban road transport'. The Commission shall establish a uniform design for this label.

Subsidiarity : Member States may apply more stringent award criteria to the procurement of clean and energy efficient vehicles, and may elect to purchase reconditioned vehicles or have existing vehicles modernised.

Additional support for the public sector : Member States should undertake to inform public sector employees of the merits of alternative fuelled vehicles. They should also encourage and support suppliers of alternative fuels to make replacement fuels widely available to the public.

Transparency : MEPs have introduced a number of amendments with a view to strengthening transparency and public access to information, and improving the scope for comparison. The Commission shall encourage the dissemination of best practice to enable policies to be drawn up in the area of clean and energy efficient public transport services, by setting up an EU Internet site, in order to move gradually towards the application of standardised Community-wide criteria to the procurement of vehicles by the entities covered by this Directive. The Commission shall publish on the Internet site all relevant information related to the financial instruments available in the individual Member States for urban mobility and for the promotion of clean and energy efficient road transport vehicles.

Financial instruments : MEPs call on the Commission to develop a European climate protection fund, which shall be used, inter alia, to encourage the purchase of clean and energy efficient road transport vehicles by authorities and operators. The competent budgetary authorities shall set aside appropriate resources in the EU budget.

Review and assessment of the impact of the Directive : a number of amendments have been proposed by the committee to ensure specific follow-up and evaluation of the impact on the market and the environment. The Commission shall: i) no later than 3 years after the date of entry into force, and every two years thereafter, prepare a report on the application of this Directive and on the actions taken by individual Member States to promote the procurement of clean and energy efficient road transport vehicles; ii) assess the effects of this Directive including quantitative indicators to evaluate the environmental benefits, the reporting by Member States and the need for further action, and include proposals as appropriate; iii) compare the nominal and relative figures of vehicles purchased corresponding to the best market alternative in terms of overall lifetime costs, including external costs, within each of the four categories of vehicles to the overall market for these vehicles.

Implementation : MEPs state that it should be possible to introduce and use the prescribed method for calculating lifetime costs as early as 2010 (instead of 2012) so that the environmental and market effects can come into force as quickly as possible.

The Council reached a general approach on a draft directive on the promotion of clean and energy efficient road transport vehicles. The aim is to promote the market for clean and energy efficient vehicles and improve the transport sector's contribution to fulfilling the EU's environment, climate and energy policies. The directive will require authorities and public passenger transport operators to take energy consumption, CO2 emission and other pollutant emissions into account when purchasing a vehicle.

The Council's preparatory bodies made several changes to the Commission's proposal, in particular by re-defining the scope and by introducing the requirement for authorities and operators to take energy and environment impacts into account when purchasing a vehicle while allowing the application of different options for fulfilling this requirement.

The scope of the draft directive has been re-defined in order to achieve coherence with the public procurement directives 2004/17/EC and 2004/18/EC and the public service obligations regulation (EC) 1370/2007. The Commission proposed that authorities and operators should apply a single harmonised method of calculation of lifetime costs when vehicles are purchased without setting any further requirement as to the energy and environmental impact of the purchased vehicle.

The text agreed by the Council requires authorities and operators to take energy and environmental impacts into account when purchasing a road transport vehicle - including at least the energy consumption, the CO2 emissions and the pollutant emissions - and provides for two options to fulfil this requirement. These options are:

a) setting of technical specifications for energy and environmental performance in the documentation for the purchase of road transport vehicles or including energy;

b) environmental impacts in the purchasing decision. In cases where a procurement procedure is applied, this must be done by using these impacts as award criteria and in cases where these impacts are monetised for inclusion in the purchasing decision, a harmonised methodology as set out in the draft directive needs to be used.

Such flexibility as to the options will permit the purchasing authorities and operators to reflect better the diversity of local environmental issues and priorities. Member States will have two years from the entry into force of the directive to transpose its provisions.

PURPOSE: to promote clean and energy efficient road vehicles in order to reduce fuel consumption.

PROPOSED ACT: Directive of the European Parliament and of the Council.

BACKGROUND: manufacturers are not inclined to produce special, energy efficient, vehicles that respond to local or national incentives only. Action is therefore needed at a Community level in order to encourage the kind of investment needed to encourage manufactures to produce less polluting and more energy-efficient products. Obliging public authorities to purchase vehicles that fulfil higher environmental standards is an incentive to the manufacturers to produce clean and energy efficient road vehicles.

To recall, in December 2005, the Commission proposed a Directive on the promotion of clean vehicles through public procurement. The main focus of this proposal was on heavy duty vehicles. It required that 25% of all heavy duty vehicles (buses etc.) purchased by public authorities needed to comply with the existing Enhanced Environmentally friendly Vehicle (EEV) standard. Following the first reading of this proposal, both Parliament and Council proposed a broader approach in the range of vehicles covered and in the stated objectives of the proposal. On 21 June 2006, the European Parliament’s Committee on the Environment, Public Health and Food Safety, adopted a legislative Resolution rejecting the initial Commission proposal. As a result of this development the Commission is re-submitting its proposal taking account of Parliamentary and Council views.

CONTENT: the purpose of this proposal is to promote clean and energy efficient vehicles. It intends to realise this objective by focussing specifically on award criteria in the public procurement of road transport vehicles. Thus, any award criteria in the procurement of road transport vehicles must include an operational lifetime analysis of costs relating to:

Energy consumption; CO 2 emissions; and Pollutant emissions.

The same costs criteria apply to the purchase of such vehicles by operators under contract, licence, permit or authorisation granted by public authorities.

The “costs” of energy consumption, CO 2 and pollutant emissions will be “monetised” and calculated according to a methodology set out in the proposed Directive. This methodology includes, for example:

Energy consumption: the fuel consumption per kilometre of a vehicle will be converted into energy consumption per kilometre; a single monetary value per unit of energy will be the lower of the cost per unit of energy of petrol or diesel before tax and when used as a transport fuel; and a lifetime cost of the energy consumption for the operation of a vehicle will be calculated by multiplying the lifetime mileage with the energy consumption per kilometre and by the cost per unit of energy. CO 2 emissions: The lifetime cost for the CO 2 emissions of a vehicle will be calculated by multiplying the lifetime mileage with the CO 2 emission in kilograms per kilometre. Pollutant emissions: The lifetime cost for the pollutant emission will be calculated by adding up the lifetime costs for emissions of oxides of nitrogen, non-methane hydrocarbons and particulate matter.

Fuel consumption, CO 2 emissions and pollutant emission per kilometre will be based on standardised EU test procedures.

The proposal complements other EU measures on pollutant emission standards, CO 2 emission reduction through the setting of fleet limits, labelling and fiscal measures and on the promotion of market introduction of alternative fuels, such as biofuels. It will also help towards achieving the set targets for overall energy efficiency improvements.

PURPOSE: to promote clean and energy efficient road vehicles in order to reduce fuel consumption.

PROPOSED ACT: Directive of the European Parliament and of the Council.

BACKGROUND: manufacturers are not inclined to produce special, energy efficient, vehicles that respond to local or national incentives only. Action is therefore needed at a Community level in order to encourage the kind of investment needed to encourage manufactures to produce less polluting and more energy-efficient products. Obliging public authorities to purchase vehicles that fulfil higher environmental standards is an incentive to the manufacturers to produce clean and energy efficient road vehicles.

To recall, in December 2005, the Commission proposed a Directive on the promotion of clean vehicles through public procurement. The main focus of this proposal was on heavy duty vehicles. It required that 25% of all heavy duty vehicles (buses etc.) purchased by public authorities needed to comply with the existing Enhanced Environmentally friendly Vehicle (EEV) standard. Following the first reading of this proposal, both Parliament and Council proposed a broader approach in the range of vehicles covered and in the stated objectives of the proposal. On 21 June 2006, the European Parliament’s Committee on the Environment, Public Health and Food Safety, adopted a legislative Resolution rejecting the initial Commission proposal. As a result of this development the Commission is re-submitting its proposal taking account of Parliamentary and Council views.

CONTENT: the purpose of this proposal is to promote clean and energy efficient vehicles. It intends to realise this objective by focussing specifically on award criteria in the public procurement of road transport vehicles. Thus, any award criteria in the procurement of road transport vehicles must include an operational lifetime analysis of costs relating to:

Energy consumption; CO 2 emissions; and Pollutant emissions.

The same costs criteria apply to the purchase of such vehicles by operators under contract, licence, permit or authorisation granted by public authorities.

The “costs” of energy consumption, CO 2 and pollutant emissions will be “monetised” and calculated according to a methodology set out in the proposed Directive. This methodology includes, for example:

Energy consumption: the fuel consumption per kilometre of a vehicle will be converted into energy consumption per kilometre; a single monetary value per unit of energy will be the lower of the cost per unit of energy of petrol or diesel before tax and when used as a transport fuel; and a lifetime cost of the energy consumption for the operation of a vehicle will be calculated by multiplying the lifetime mileage with the energy consumption per kilometre and by the cost per unit of energy. CO 2 emissions: The lifetime cost for the CO 2 emissions of a vehicle will be calculated by multiplying the lifetime mileage with the CO 2 emission in kilograms per kilometre. Pollutant emissions: The lifetime cost for the pollutant emission will be calculated by adding up the lifetime costs for emissions of oxides of nitrogen, non-methane hydrocarbons and particulate matter.

Fuel consumption, CO 2 emissions and pollutant emission per kilometre will be based on standardised EU test procedures.

The proposal complements other EU measures on pollutant emission standards, CO 2 emission reduction through the setting of fleet limits, labelling and fiscal measures and on the promotion of market introduction of alternative fuels, such as biofuels. It will also help towards achieving the set targets for overall energy efficiency improvements.

The committee adopted the report by Dan JØRGENSEN (PES, DK) rejecting - under the 1st reading of the codecision procedure - the proposed directive on the promotion of clean road transport vehicles. The committee argued that the proposal had been put forward too late and therefore, in its current form, would not have the desired impact on the environment and human health. It therefore called on the Commission to withdraw the proposal and to focus its efforts instead on coming forward with a proposal on environmentally ambitious, technology-driving and stringent EURO VI standards as soon as possible.

The Council took note of information on the Commission's proposal for a directive of the European Parliament and of the Council on the promotion of clean road transport vehicles. The aim of the proposal is to reduce pollutant emissions by the transport sector and contribute to the establishment of a market for clean vehicles. It is currently being examined by the Environment Working Party and will eventually be adopted by the Environment Council.

PURPOSE : to contribute towards the creation of a market for “clean” vehicles in order to reduce pollutant emissions in the transport sector.

PROPOSED ACT : Directive of the European Parliament and of the Council.

CONTENT : considering the continuing growth of the transport sector and its knock-on effects in terms of pollution and dependence on oil, the Commission stresses the need to develop a market for “clean” vehicles. In the EU as a whole, road transport accounts for approximately one-quarter of total energy consumption and CO 2 emissions. The potential for reducing vehicle emissions and making energy savings is substantial. However, the technologies needed remain more expensive than conventional vehicle manufacturing technologies.

As far as the European vehicle mass production industry is concerned, manufacturers are unlikely to produce special vehicle series to respond to local or even national incentives aimed at improving energy efficiency or reducing pollutant emissions. Action at Community level is therefore needed in order to encourage the investments required for the manufacture of vehicles that are more energy-efficient and less polluting.

The resulting increased demand would provide support for vehicle manufacturers to develop vehicles with better performances in terms of energy consumption and pollutant emissions. This could then allow a turn-around in demand and create markets of sufficient size and the necessary economies of scale to broaden industrial production to large series.

The objective of this proposal is to reduce pollutant emissions by the transport sector and contribute to the establishment of a market for clean vehicles. This is particularly relevant for agglomerations and zones in difficulties to meet the requirements of the Air Quality Directive (Directive 1996/62/EC on air quality and Directive 1999/30/EC on limit values of pollutants in ambient air).

An environmentally enhanced performance standard has already been established in EU legislation for vehicles above 3.5 t weight for optional use, such as tax incentives. This proposal takes a next step and uses the existing "Enhanced environmentally friendly vehicle" (EEV) for Heavy Duty Vehicles, above 3.5 t weight, as defined in Directive 2005/55/EC to implement it on a mandatory basis for part of the fleet.

Public bodies (State, regional or local authorities, bodies governed by public law, public undertakings and operators contracted by public bodies to supply transport services) will be obliged to allocate a minimum quota of 25% of their annual procurement (purchasing or leasing) of heavy-duty vehicles (with a weight greater than 3.5 tonnes) to “enhanced environmentally friendly vehicles” as defined in the European Performance Standard (EEV). Heavy duty vehicles include buses and most utility vehicles, such as refuse collection lorries. An extension of the clean vehicle procurement obligation to passenger cars and light duty vehicles based on a thorough impact assessment could be considered at a later stages once environmentally enhanced performance standards have been developed for them.

PURPOSE : to contribute towards the creation of a market for “clean” vehicles in order to reduce pollutant emissions in the transport sector.

PROPOSED ACT : Directive of the European Parliament and of the Council.

CONTENT : considering the continuing growth of the transport sector and its knock-on effects in terms of pollution and dependence on oil, the Commission stresses the need to develop a market for “clean” vehicles. In the EU as a whole, road transport accounts for approximately one-quarter of total energy consumption and CO 2 emissions. The potential for reducing vehicle emissions and making energy savings is substantial. However, the technologies needed remain more expensive than conventional vehicle manufacturing technologies.

As far as the European vehicle mass production industry is concerned, manufacturers are unlikely to produce special vehicle series to respond to local or even national incentives aimed at improving energy efficiency or reducing pollutant emissions. Action at Community level is therefore needed in order to encourage the investments required for the manufacture of vehicles that are more energy-efficient and less polluting.

The resulting increased demand would provide support for vehicle manufacturers to develop vehicles with better performances in terms of energy consumption and pollutant emissions. This could then allow a turn-around in demand and create markets of sufficient size and the necessary economies of scale to broaden industrial production to large series.

The objective of this proposal is to reduce pollutant emissions by the transport sector and contribute to the establishment of a market for clean vehicles. This is particularly relevant for agglomerations and zones in difficulties to meet the requirements of the Air Quality Directive (Directive 1996/62/EC on air quality and Directive 1999/30/EC on limit values of pollutants in ambient air).

An environmentally enhanced performance standard has already been established in EU legislation for vehicles above 3.5 t weight for optional use, such as tax incentives. This proposal takes a next step and uses the existing "Enhanced environmentally friendly vehicle" (EEV) for Heavy Duty Vehicles, above 3.5 t weight, as defined in Directive 2005/55/EC to implement it on a mandatory basis for part of the fleet.

Public bodies (State, regional or local authorities, bodies governed by public law, public undertakings and operators contracted by public bodies to supply transport services) will be obliged to allocate a minimum quota of 25% of their annual procurement (purchasing or leasing) of heavy-duty vehicles (with a weight greater than 3.5 tonnes) to “enhanced environmentally friendly vehicles” as defined in the European Performance Standard (EEV). Heavy duty vehicles include buses and most utility vehicles, such as refuse collection lorries. An extension of the clean vehicle procurement obligation to passenger cars and light duty vehicles based on a thorough impact assessment could be considered at a later stages once environmentally enhanced performance standards have been developed for them.